Can I borrow for my business?

See how likely you are to get a Business Loan or Overdraft without affecting your credit rating. View indicative interest rates and repayment details. 99% of customer who used this tool and opened the same product received an offer rate that was the same, better or no more than 10% above their initial quote.

Business Overdraft

Can I borrow for my business?

See how likely you are to get a Business Loan or Overdraft without affecting your credit rating. View indicative interest rates and repayment details. 99% of customer who used this tool and opened the same product received an offer rate that was the same, better or no more than 10% above their initial quote.

Interest rate

Tailored interest rates based on your business status. 8.35% EAR representative* (Varies with Bank of England Bank Rate) for unsecured overdrafts up to £25,000. For all overdrafts above £25,000, and secured overdrafts, rates are available on request.

Overdraft term

Up to 12 months

Overdraft amount

£500+

Fees

Please be aware that charges apply

You will pay an arrangement fee of up to 1.5% on the amount of your overdraft, subject to a minimum fee of £250**. Subsequent renewals will include an arrangement fee of 1%, subject to a minimum fee of £200. We will discuss full terms with you before any overdraft is taken out.

**The minimum fee is applicable in order to cover the administration cost of arranging smaller overdrafts.

Important information

EAR stands for equivalent annual rate. It is the rate you would pay if you go overdrawn to the full limit of your facility for the entire year. It takes into account the interest rate you are charged as a result and how often it’s charged – in this case interest is calculated daily and charged monthly. It then takes into account the effect of compounding – charging interest on interest – on your debt. Charges for unarranged overdrafts are charged separately.

*The representative EAR is an illustration of the rate that the majority of customers will receive. If an overdraft is described as having a particular representative EAR then we expect to offer that rate or better to at least 51% of the applicants we accept. Other customers may get a different rate based on their individual circumstances.

Our representative EAR applies to all unsecured overdrafts with a borrowing amount of up to £25,000 for businesses with a turnover from £1million up to £25 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.

The Bank of England Bank Rate is the official Bank Rate set by the Bank of England which can affect interest rates offered by Banks, Building Societies and other financial institutions. By changing the official Bank Rate, the Bank of England seeks to influence overall borrowing in the economy.

The Bank Rate has been consistently low for a number of years.

However as the UK economy improves, the Bank of England is likely to increase the official Bank Rate.

The current Bank of England Bank Rate is 0.75% (effective from 2 August 2018).

Changes in the Bank Rate could affect payments on any accounts you may hold with us, such as loans, overdrafts, commercial mortgages or deposits.

Compare our loan options:

Base Rate Loan

Fixed Rate Loan4

Capped Base Rate Loan5

Commercial Fixed Rate Loan4

Interest Rate

Base Rate Loan

9.3% APR3 (variable) representative*

Representative example: 9.3% APR based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £165.68 at an annual interest rate of 8.90% (variable). Total amount payable £9,940.80

Fixed Rate Loan4

9.3% APR3 representative*

Representative example: 9.3% APR based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £165.68 at an annual interest rate of 8.90% (fixed). Total amount payable £9,940.80

Capped Base Rate Loan5

Varies with Bank of England Bank Rate

Commercial Fixed Rate Loan4

Can be Fixed for periods from 1 year to the full term of the loan

Loan Term

Base Rate Loan

Up to 25 years

Fixed Rate Loan4

1 to 10 years

Capped Base Rate Loan5

5 to 25 years

Commercial Fixed Rate Loan4

1 to 25 years

Loan Amount

Base Rate Loan

£1,000+

Fixed Rate Loan4

£1,000 - £50,000

Capped Base Rate Loan5

£50,001 - £1,000,000

Commercial Fixed Rate Loan4

£50,001+

Arrangement Fee

Base Rate Loan

Up to 1.5% of the loan amount

Fixed Rate Loan4

Up to 1.5% of the loan amount

Capped Base Rate Loan5

Up to 1.5% of the loan amount

Commercial Fixed Rate Loan4

Up to 1.5% of the loan amount

Base Rate Loan

Fixed Rate Loan4

Capped Base Rate Loan5

Commercial Fixed Rate Loan4

Can I borrow for my business?

See how likely you are to get a Business Loan or Overdraft without affecting your credit rating. View indicative interest rates and repayment details. 99% of customer who used this tool and opened the same product received an offer rate that was the same, better or no more than 10% above their initial quote.

*The representative APR is an illustration of the rate that the majority of customers will receive. If a loan is described as having a particular representative APR, then we expect to offer that rate or better to at least 51% of the applicants we accept. Other customers may get a different rate based on their individual circumstances. Our representative APR applies to all unsecured loans with a borrowing amount of up to £25,000 for businesses with a turnover of up to £25 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.

ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.

All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

1 9 out of 10 is based on formal credit applications and is an average across the period January 2017 - December 2017.

2 Lending discretion of Relationship Managers varies and some applications may be referred for further credit checks. All lending is subject to a satisfactory credit assessment.

3 Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage of the total amount of credit. It represents the actual yearly cost of credit over the loan term and includes not only the interest but also any other charges you have to pay, for example, an arrangement fee. The APR will vary depending on the loan amount and term.

4 There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same level.

5 A Capped Base Rate loan is a variable rate loan where the Total Interest Rate payable will not go above a maximum level or “Capped Rate” during the Capped Rate Period. The Capped Rate Period is five (5) years, and this may be equal to or less than the full term of the loan.

6 Capital repayment holidays available in certain circumstances only.

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
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Bank of Scotland plc Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 169628.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.

The Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on the Lloyds Banking Group can be found at lloydsbankinggroup.com.